High Return Costs from Sizing Issues
Definition
Dropshipping shoes results in higher return rates due to sizing mismatches across countries, increasing costs for refunds and reverse logistics in direct-to-store fulfillment.
Key Findings
- Financial Impact: AUD 50-150 per return (refund + shipping + 10% restock fee); 20-30% return rate typical for shoes
- Frequency: Per order/return
- Root Cause: Lack of standardized sizing charts and country-specific fit data in dropship model
Why This Matters
Wholesale Footwear players in Australia 🇦🇺 waste AUD 5,000-15,000 annually on returns per 100 orders. Automation of sizing verification and returns eliminates this risk.
Affected Stakeholders
Fulfillment Manager, Customer Service, Store Owner
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
Premium Pricing on Drop Ship Orders
Lost Sales from Delivery Delays
GST/BAS Errors on Dropship Imports
Defective Product Chargebacks
Vendor Chargeback Disputes
Incorrect Tariff Classification Penalties
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